New Delhi: In a move to simplify record keeping and ensure greater tax compliance, the government plans to introduce a single data point that will track all financial records, like investments, of an individual. This is among the five steps that Finance Minister P Chidambaram has outlined in interim Budget 2014-15 to deepen the financial market.
The steps include comprehensively revamp the ADR, GDR scheme and enlarge the scope of depository receipts, liberalise the rupee denominated corporate bond market and deepen and strengthen the currency derivatives market to enable Indian companies to fully hedge against foreign currency risks.
Besides, the interim budget has envisaged creation of one record for all financial assets of every individual and to enable smoother clearing and settlement of international investors looking to invest in Indian bonds. The concept of one record for all financial assets is currently being looked into by the sub-committee of the FSDC. "This means that like there is a securities depository NSDL and CDSL where all the securities are held in dematerialised form in one place, we want to create one record where a person's all financial aspects are recorded in that one record and eventually in dematerialised form," Chidambaram said.
He said once FSDC sub-committee report comes and the FSDC approves report, we will implement it. "All regulators have agreed that the financial record of person -- suppose I have shares, bonds, mutual funds, bank deposits -- all my financial assets must be available at one record which I can access say online in a depository," he said.